United Methodist Retirement Communities Inc.

“Draft of 990 is reviewed by umrc president/ceo and chief financial officer of umrc. Finalized return is sent to the umrc board of trustees for comment prior to submission to the internal revenue service.”

“Umrc, inc. Expects its employees and trustees to conduct the business of umrc or the umrc foundation in a legal and ethical manner, observing the highest standards of integrity and business ethics. When acting on behalf of umrc or the umrc foundation, these individuals should act solely for the benefit of the organizations. Each employee and trustee should avoid any financial relationship or other situation which represents a conflict between umrc interests and other personal interests of the individual. The umrc policy on conflict of interest is distributed annually to members of the umrc board of trustees, umrc president and ceo, and umrc administrative staff, including department heads and central supply staff. At the time of the distribution of the policy, each person will be given the opportunity to disclose real or potential conflicts of interest, which will be kept confidential. Disclosures of any potential conflicts of interest by trustees and/or staff are forwarded to the governance committee for review. Any transaction between umrc and an entity affected by a conflict of interest of any umrc employee or trustee shall not be void but shall be valid if 1) the transaction is fair and reasonable, 2) the material facts of the conflict are disclosed to the board of trustees or governance committee, 3) the transaction is discussed and voted upon by the board or committee outside the presence of the affected individual, 4) the transaction is approved, and 5) the minutes of the board or committee reflect compliance with the policy. Individuals with a conflict are not permitted to be present during discussions or any vote regarding the conflict of interest. Any trustee of the umrc board who becomes aware of a relationship that does, or might, constitute a conflict of interest after completing and signing this form must file an updated form.”

“Approximately every three years, umrc hires an independent consultant to perform a compensation study. In interim years, umrc uses industry standard compensation studies from multiple sources. All findings are documented and presented to the compensation committee of the umrc board of trustees along with an annual evaluation of the ceo's performance and goals for the coming year. The compensation committee recommends a salary increase to the board of trustees for approval. The deliberation and determination of compensation is documented in the organization's board minutes.”

“Approximately every three years, umrc hires an independent consultant to perform a compensation study. In interim years, umrc uses industry standard compensation studies from multiple sources. All findings are documented and presented to umrc's board of trustees and compensation committee. Utilizing these results, salary increases are set by the umrc president and ceo and vice president of human resources.”

“Umrc's financial statements are available on the umrc website (www.umrc.com), and such nonprofit database sites as guidestar and foundation center. Umrc's governing documents and conflict of interest policy, in addition to its financial statements, are available upon request.”

“SCHEDULE R CORRECTIONS”

“United methodist retirement communities (umrc) has been a leader in caring for seniors since its faithful founding in 1906. With a tradition of exceptional quality and commitment to cutting-edge care, umrc offers michigan's most diverse continuum of housing options and services across 12 counties to older adults of all income levels. These include market rate and affordable independent and assisted living options, skilled nursing and rehabilitation, specialized dementia and alzheimer's care, physical and occupational therapy, and programs of all-inclusive care for the elderly, or pace. Building on a foundation of 110 years of service, the mission of umrc is to promote the wellness, dignity and independence of older adults by providing high-quality and innovative residential and supportive services. Umrc foundation was created in 1998 as the fundraising arm for umrc, supporting benevolent care for residents who have outlived their savings, as well as growth opportunities for the organization. Umrc foundation's mission is to promote the wellness, dignity, and independence of seniors by supporting the residents, staff, and communities umrc serves. The population of seniors over the age of 65 is expected to double by the year 2030, and the oldest adults, 85 years and older, will grow by 300%. Umrc is committing its efforts to remain ahead of the curve and to embrace the care needs and wishes of this dramatically growing sector. Umrc's vision is to continue its own significant growth, creating and enhancing options to increase the number of older adults it serves, while focusing on umrc's faith-based mission.”